DOJ: Andersen trying to slow probe

MattAndrejczak

WASHINGTON (CBS.MW) -- The U.S. Justice Department asked a federal judge in Houston not to limit the grand jury proceedings against Andersen in the shredding of Enron-related documents.

In court documents filed late Thursday, the Justice Department said it is still investigating potential crimes by Andersen employees and the company itself. It seeks to call additional witnesses before the grand jury.

"Andersen personnel called to testify under oath before grand jury may well offer fuller accounts than previously given to government interviews, thereby implicating additional persons in further criminal conduct and providing evidence of uncharged criminal conduct beyond what the government has acquired to date," the Justice Department said.

This week lawyers for Andersen moved to bar federal prosecutors from compelling additional testimony from its employees before the grand jury.

They argued it was a "manifest abuse of the grand jury" process to haul the witnesses before the grand jury after the trial date had been set. They further asked the court to suspend the grand jury's investigation into Enron until its obstruction-of-justice trial was completed.

Andersen's lawyers suspect federal prosecutors are still trying to build their case against the floundering audit firm.

The Justice Department responded to Andersen's motion Thursday, saying the audit firm is trying to "manipulate the pace and timing of the government's investigation into obstruction of justice other crimes" tied to Enron
ENRNQ
and Andersen employees.

The trial is set to begin May 6.

The government charged Andersen with one count of obstruction-of-justice for shredding Enron-related documents on March 14.

Shortly after the indictment was unsealed, the Justice Department served subpoenas on three Andersen partners and one employee. All were subjected to lengthy interviews with federal investigators in the weeks prior to the one-count indictment.

None of Andersen's employees testified before the grand jury prior to the unsealing of the indictment. An FBI agent read their depositions to the grand jury.

On March 27, Andrew Weissman, one of the Justice Department's prosecutors, convened a special grand jury to continue the investigation of all criminal activity related to Enron's swift demise.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.